Please note that VIMA does not offer the full range of options available or adapted to start-up financing cycles, as they often depend on the transaction or the parties involved. Depending on the circumstances, the parties must therefore, if necessary, adapt the specific conditions of the documents to their needs. Additional documentation may also be required for an early funding cycle (for example. B the creation of the company, the agreement of other investors, the employment contract of the founders, etc.). However, we believe that the venture capital model agreements would remain relevant by providing a useful guide to the typical structure of funding cycles. A incorporation model that reflects the terms of the standard shareholder contract can be a useful complement to VIMA documents. Launched on October 23, 2018, VIMA is a series of contracts that balance the interests of investors and equity parties, limit the scope of outstanding issues on which the parties are negotiating and help the parties reach common ground more quickly. The standard agreements, developed in a simple and user-friendly form, contain explanations designed to help users determine their position on the basis of their relative negotiating positions. The first set of documents covering the financing cycles prior to Series A and Series A is as follows: a form contains the main terms of the transaction under which an investor (or group of investors) will subscribe to shares in a company.
It also outlines the ongoing rights and obligations of investors, founders and the company vis-à-vis such a company. With the exception of certain provisions, a terminology sheet is a non-binding agreement and the parties concerned must enter into binding agreements to implement their terms. A shareholders` pact defines the company`s main terms and conditions as well as the rights and obligations of investors and founders as shareholders of the company. The Singapore Academy of Law and the Singapore Venture Capital – Private Equity Association launched the Venture Capital Model Agreements (VIMA) in October 2018. VIMA proposes a series of usage models in seed cycles and start-up financing, aimed at reducing transaction costs and reducing friction during the negotiation process. The VIMA document collection is available for free download at the www.singaporelawwatch.sg and includes: (c) we were able to focus our time on developing business-specific clauses to reflect the negotiating agreement between the parties (for example. B the terms of the different classes of shares, governance rights, etc.). (b) that the time required to prepare the final agreements has passed net (in order to reduce the net legal costs borne by clients); And the Long Form /Short Form – An appointment sheet sets out the most important terms that an investor/investor group will subscribe to for a company`s shares. It is a non-binding agreement (with the exception of certain provisions) and the parties concerned must enter into binding agreements to implement their terms. Venture capital investments are becoming increasingly popular and widespread in Singapore and Southeast Asia, and this trend is expected to continue.
Each investment may be unique, but founders and investors (and their respective advisors) don`t need to spend time and cost preparing and negotiating any investment from scratch, especially for start-up financing.